HDFC Mutual Fund is headquartered in Mumbai and is managed by HDFC Asset Management Company Ltd. The fund house was established as a Trust in the year 2000 and is sponsored by Housing Development Finance Corporation Ltd. (HDFC) and Standard Life Investments Ltd. The mutual fund house offers many schemes across various asset classes of debt, equity, liquid, exchange traded funds (ETFs), Fund of Funds (FoFs), etc.

The HDFC Regular Savings Fund - Growth scheme is an open-ended income scheme that invests in money market and debt securities. The scheme comes in both growth and dividend option. The growth option of the scheme keeps the capital invested till the end of the term after which returns will be paid out to the investor.

Investment Objective:

To produce regular income for the investor through investment in debt and money market securities.

Key Features:

Type of fund

An open-ended income scheme

Plans available

Growth
Dividend - Payout and Reinvestment

Options under each plan

The dividend option has payout and reinvestment option

Risk

Moderate

Systematic Investment Plan

Available

Systematic Transfer Plan

Available

Systematic Withdrawal Advantage Plan

Available

Investment amount for HDFC Regular Savings Fund:

Minimum Application Amount

Rs.5,000

Minimum Additional Investment

Rs.1,000

Minimum installment for Systematic Investment Plan (SIP)

Rs.500

Entry Load

Not Applicable

Exit Load

0.75% exit load will be applicable if investors exit before 12 months before unit allotment date. No exit load will apply thereafter

NAV Disclosure and Benchmark for HDFC Regular Savings Fund:

The Net Asset Value (NAV) per unit of a scheme is calculated by dividing the scheme’s net assets by the number of outstanding units under the scheme on the date of valuation. The NAVs will be computed up to 3 decimals.

The NAV of the mutual fund will be updated by the fund house on its website - www.hdfcfund.com and also on the website of AMFI at www.amfiindia.com on every working day by 9:00 p.m. The NAVs will also be sent for publication to at least 2 newspapers with nationwide circulation.

Liquidity: Since the scheme is open-ended, units can be purchased or sold at applicable NAVs on every business day.

Benchmark: CRISIL Short Term Bond Fund Index

Fund Manager:

Mr. Rakesh Vyas

The HDFC Regular Savings Fund is managed by Mr. Rakesh Vyas who has been managing the scheme since 4 years and 10 months. Overall, he has over 13 years of experience out of which 10 years were into equity research. The other funds managed by him are HDFC Growth Fund, HDFC Equity Fund, HDFC Capital Builder Fund, HDFC Children’s Gift Fund, HDFC Infrastructure Fund, HDFC Liquid Fund, HDFC Prudence Fund, etc.

Investment Restrictions on HDFC Regular Savings Fund:

The Securities and Exchange Board of India (SEBI) has laid down the below investment restrictions for subscription to the HDFC Regular Savings Fund:

The scheme is not allowed to invest above 25% of its net assets in debt securities that have been issued by issuers of one sector. This regulation will not be applicable to investments in government securities, treasury bills, and CBLO (Collateralised Borrowing and Lending Obligation).

The scheme is not permitted to invest over 20% of its net assets in a group. The group excludes investments in Public Sector Banks (PSBs), Public Sector Units (PSUs) and Public Financial Institutions (PFIs).

The scheme cannot invest over 10% of its NAV in debt, money and non-money market securities that have been issued by a single issuer. Such securities should be rated above the investment grade by a credit rating agency.

The scheme is not permitted to park funds in short-term bank deposits of a bank that has made investments in the scheme.

The scheme can make transactions dealing with government securities only in dematerialised form.

The scheme is not permitted to make investments in any security of group or associate company of the sponsors that are unlisted. It is also not allowed to invest in any Fund of Funds (FoF) scheme.

The scheme cannot invest in listed securities of the sponsors’ group companies over 25% of its net assets.

The mutual fund is allowed to purchase and sell securities based on deliveries provided the securities are delivered in all cases.

All of the above-mentioned investment restrictions will apply only when the investment is made.

Dividend Policy of HDFC Regular Savings Fund:

Dividends will be declared and distributed by the Trustee depending on the availability of distributable surplus. The dividends will only be paid out to unitholders who have opted for this option and whose names appear on the register of the unitholders. The dividend payments will be made through a cheque or can be transferred directly into the bank account of the unitholder. The scheme also comes with a dividend reinvestment facility where the dividend declared will be reinvested back into the scheme.

The dividend option will reduce the NAV of the unitholders by the declared dividend amount.

Other Facilities offered by the HDFC Regular Savings Fund:

The HDFC TaxSaver Plan offers the below facilities to investors:

Systematic Investment Plan (SIP)

Systematic Withdrawal Plan (SWP)

Systematic Transfer Plan (STP)

HDFC Swing Systematic Transfer Plan

Dividend Transfer Plan Facility

Systematic Withdrawal Advantage Plan (SWAP)

HDFC Flexindex Plan

One Time Mandate (OTM) Facility

Switching Option

Facility to buy or sell units through the stock exchange

Why you should invest in HDFC Regular Savings Fund:

Special benefits - The scheme offers many facilities to its investors such as HDFC Swing Systematic Transfer plan, HDFC Flexindex Plan, etc. The HDFC Flexindex Plan, for example, allows investors holding units in non-demat form to automatically transfer a predetermined percentage to select equity schemes subject to Terms and Conditions.

Professional management - The fund managers of the HDFC Regular Savings Plan have over 13 years of experience in managing investments so you can rest assured that your investment will fetch most favourable returns.

Offers various investment options - The HDFC Regular Savings Fund offers both regular and direct plans. The direct plan offers a lower expense ratio and therefore, is ideal for investors who do not wish to shell out any additional costs on the investment.

Low risk - Since the scheme invests in debt and money market securities, it offers low risk to the investor. The scheme is also capable of fetching optimal returns for the investor by investing in the mentioned securities.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.